China State Shipbuilding Corporation’s Dalian Shipbuilding Industry Corporation (DSIC) and Hengli Heavy Industries have successively secured major shipbuilding contracts, maintaining their active presence in the global new shipbuilding market.
DSIC secures first-ever order for two VLCCs from EPS
Israeli shipping magnate Idan Ofer’s Singapore-based East Pacific Shipping (EPS) has returned to the Very Large Crude Carrier (VLCC) market after a seven-year hiatus, placing its first VLCC order with DSIC.
According to shipbroker Bancosta, EPS has placed an order with DSIC for two 306,000 DWT VLCCs. Each vessel is valued at US$123 million, bringing the total order value to US$246 million. Delivery is scheduled for the third quarter of 2027.
Including the latest order disclosure, DSIC has secured eight VLCCs this year, with a total order value of approximately RMB 6.84 billion, all of which will be delivered before 2028. The first six VLCCs were announced at the end of October, with orders coming from Hainan COSCO Shipping Development, a subsidiary of COSCO Shipping Development, at a unit price of RMB 847.8 million (approximately US$119 million). Among these, the new vessels from COSCO Shipping Development feature a dual-fuel design with provisions for methanol and LNG; the fuel option for EPS has not yet been disclosed.
The two new VLCCs mark EPS’s return to this segment after several years. In 2018, EPS announced the sale of its last VLCC, temporarily exiting the market to focus on Aframax and Suezmax tankers, while gradually expanding into the MR product tanker market in subsequent years. The re-entry with two new VLCCs signals that this shipping giant will further expand its tanker transportation operations.
Separate sources indicate that the two VLCCs secured by DSIC also represent EPS’s first-ever order for newbuild VLCCs, marking the inaugural collaboration between DSIC and EPS.
Xclusiv shipbroking data indicates that 35.1% of the existing VLCC fleet is aged 16 years or older, highlighting the persistent potential for fleet renewal in this sector. This is also one of the reasons EPS decided to invest in shipbuilding.
According to its official website, EPS has a 60-year operational history and currently manages a diversified fleet of 304 vessels. This fleet spans four core sectors: container ships, dry bulk carriers, liquefied gas carriers, and oil tankers. Among these, 74 vessels are dual-fuel vessels, with a total deadweight capacity of 31 million tons.
Hengli Heavy Industries Secures Another Order for 6 VLCCs
Hengli Heavy Industries announced on November 11 that it recently signed contracts with Norwegian shipowner Frontline for the construction of two VLCCs and with Greek shipowner TMS for the construction of four VLCCs. All new vessels will have a deadweight tonnage of 306,000 tons. Notably, rumors surfaced earlier this month that TMS was finalizing agreements with Hengli Heavy Industries for four VLCCs.
According to an announcement disclosed by *ST Songfa on the 12th, the combined contract value for four vessels totals approximately US$400 million to US$600 million. Based on this calculation, the cost per vessel is estimated at US$100 million to US$150 million, with deliveries scheduled to commence in March 2028.
With the announcement of six new vessels, Hengli Heavy Industries has now publicly disclosed orders for 21 VLCCs this year, all from European shipowners: Frontline (8 vessels), Laskaridis (2 vessels), Dynacom (4 vessels), Capital (1 vessel), TMS (4 vessels), and an unnamed European shipowner (2 vessels).
Hengli Heavy Industries stated that the VLCCs it constructed adopt proprietary designs, whose advanced concepts and technologies ensure the vessels meet international standards in performance, safety, and environmental protection.
The signing of six VLCC orders further solidifies Hengli Heavy Industries’ position in the international high-end shipbuilding market and injects strong momentum into enhancing its influence and voice in the global shipping industry. Simultaneously, this collaboration will inject new vitality into the global shipping market and promote the sustainable development of the shipping industry.
Not only VLCCs, Hengli Heavy Industries has also performed exceptionally well in other vessel types recently. Since September, it has continuously announced new vessel orders. According to incomplete statistics, it has received orders for more than 50 vessels, and has signed new orders in the container vessel, bulk carrier and oil tanker markets.
As the leading shipbuilders in the Dalian region, Hengli Heavy Industries and DSIC have secured consecutive orders for VLCCs, which will continue to drive the high-quality development of Dalian’s shipbuilding industry.